Skill: Process Private Equity Deal Screening

Domain

private_equity

Description

Screens potential investment opportunities against fund investment criteria, performing preliminary due diligence scoring and deal qualification.

Tags

private-equity, deal-screening, due-diligence, investment-criteria, portfolio

Use Cases

• •Deal flow screening
• •Investment criteria matching
• •Preliminary valuation assessment
• •Portfolio fit analysis

Proprietary Business Rules

Rule 1: Investment Criteria Matching

Fund-specific investment parameters including sector, size, and geography.

Rule 2: Value Creation Assessment

Scoring potential for operational improvement and growth initiatives.

Rule 3: Risk Factor Evaluation

Proprietary risk scoring across market, operational, and financial dimensions.

Rule 4: Portfolio Concentration Limits

Sector and geography concentration checks against fund constraints.

Input Parameters

• •deal_id (string): Deal identifier
• •company_profile (dict): Target company details
• •financials (dict): Key financial metrics
• •sector (string): Industry sector
• •geography (string): Primary geography
• •deal_size (float): Enterprise value
• •fund_id (string): Target fund
• •management_quality (int): Management score 1-10

Output

• •screening_status (string): Pursue, pass, review
• •criteria_match_score (float): Fit score 0-100
• •value_creation_potential (dict): Value creation assessment
• •risk_assessment (dict): Risk scoring
• •recommendation (string): Investment recommendation

Implementation

The screening logic is implemented in deal_screener.py and references criteria from CSV files:

• •funds.csv - Reference data
• •parameters.csv - Reference data.

Usage Example

from deal_screener import screen_deal

result = screen_deal(
    deal_id="DEAL-2024-001",
    company_profile={"name": "TechCo Inc", "employees": 500, "founded": 2015},
    financials={"revenue": 50000000, "ebitda": 8000000, "growth_rate": 0.25},
    sector="technology",
    geography="north_america",
    deal_size=100000000,
    fund_id="FUND-GROWTH-I",
    management_quality=8
)

print(f"Status: {result['screening_status']}")

Test Execution

from deal_screener import screen_deal

result = screen_deal(
    deal_id=input_data.get('deal_id'),
    company_profile=input_data.get('company_profile', {}),
    financials=input_data.get('financials', {}),
    sector=input_data.get('sector'),
    geography=input_data.get('geography'),
    deal_size=input_data.get('deal_size', 0),
    fund_id=input_data.get('fund_id'),
    management_quality=input_data.get('management_quality', 5)
)